African Sun, Dawn reach deal on appointment of nominees to board

The hotel group, which is listed on the Zimbabwe Stock Exchange, owns a 29 percent stake in Dawn Properties Limited, which in turn owns most of ASL’s hotel properties including Caribbea Bay, Crowne Plaza Monomotapa, Elephant Hills Resort, Hwange Safari Lodge and the Holiday Inn hotels in Beitbridge and Mutare.

But the two companies have been locked in a fierce corporate battle over lease arrangements for the hotel properties and board representation.

Dawn Properties has in the past accused ASL of flouting lease agreements, and attempted to evict the hotel group from some of the company’s properties.

The troubles were triggered by an attempt by ASL to pledge title deeds for Crowne Plaza Monomotapa to the Industrial Development Corporation of South Africa in a $10 million loan deal.

The loan deal collapsed after Dawn Properties barred ASL from pledging Crowne Plaza Monomotapa as collateral security.

Lately, the two companies have been sparring over board representation, with ASL seeking an Extraordinary General Meeting to resolve the differences.

The hotel group was seeking shareholder approval to replace four Dawn Properties board members.

But in a statement, ASL said it had resolved its differences with Dawn Properties over the issue, and sought the cancellation of the extraordinary general meeting.

“Subsequent to the issuance of the Extraordinary General Meeting notice by Dawn Properties Limited, the parties held discussions and hereby advise that a compromise has been reached which allows the appointment of two African Sun Limited nominees, namely George Manyere and Vernon Wright Lapham to the board of directors of Dawn Properties Limited,” the company said.

“As a result, we have advised Dawn Properties Limited that upon implementation of the said board appointments they should withdraw the Extraordinary General Meeting notice.” — New Ziana.